Investing.com — Shares of Tesla Inc (NASDAQ:TSLA) surged on Monday, pushing the electric car maker’s market capitalization closer to the $1.5 trillion mark, as analysts suggest that a Trump White House could be game changer for the company and its CEO Elon Musk.
The stock climbed as much as 5.6%, continuing its impressive rally since closing on November 5. Since that date, Tesla’s shares have soared 82%, boosting the company’s market value to approximately $1.47 trillion.
Investors see the relationship between Musk and President Donald Trump as a potential advantage, particularly for advancing Tesla’s autonomous vehicle initiatives.
“We believe a Trump White House over the next four years will be a ‘total game changer’ for Tesla’s autonomous and AI developments,” a Wedbush analyst wrote in a note on Monday.
The firm raised its price target for Tesla to $515 from $400 and set a bullish case target of $650 by 2025. Wedbush also estimates that Tesla’s AI and autonomous driving opportunities alone could be worth at least $1 trillion.
Separately, Truist Securities also raised Tesla’s price target to $360, maintaining a Hold rating.
“Given the importance of this relationship, we are taking a more open-minded view of Tesla’s ability to generate positive cash flows across its various businesses, including the addition of a robotaxi service to our projections,” a Truist Securities analyst noted.
Last week, CEO Elon Musk’s net worth surpassed $400 billion, according to Forbes’ real-time billionaires list.